HNI (NYSE:HNI) Trading Down 7.9% Following Weak Earnings

HNI Corporation (NYSE:HNI) traded down 7.9% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $43.91 and last traded at $44.73. 179,201 shares traded hands during mid-day trading, a decline of 65% from the average session volume of 505,373 shares. The stock had previously closed at $48.57.

The business services provider reported $0.83 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.91 by ($0.08). HNI had a net margin of 5.46% and a return on equity of 20.33%. During the same period last year, the business earned $0.87 EPS. The company’s revenue was up 38.3% compared to the same quarter last year.

HNI Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 11th. Investors of record on Monday, March 2nd will be paid a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Monday, March 2nd. HNI’s payout ratio is presently 45.64%.

Analysts Set New Price Targets

Several analysts have recently issued reports on HNI shares. Weiss Ratings upgraded HNI from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, February 3rd. Benchmark reaffirmed a “buy” rating on shares of HNI in a research report on Friday, January 16th. Finally, Wall Street Zen cut shares of HNI from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 1st. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, HNI has an average rating of “Moderate Buy” and an average price target of $75.00.

Institutional Trading of HNI

Several institutional investors have recently made changes to their positions in HNI. Cooke & Bieler LP acquired a new position in HNI in the third quarter worth about $28,744,000. Millennium Management LLC bought a new stake in shares of HNI in the 1st quarter valued at approximately $10,666,000. Jane Street Group LLC acquired a new position in shares of HNI in the 1st quarter worth approximately $10,301,000. New York State Common Retirement Fund lifted its position in shares of HNI by 676.6% during the 2nd quarter. New York State Common Retirement Fund now owns 126,398 shares of the business services provider’s stock worth $6,216,000 after buying an additional 110,122 shares during the period. Finally, SG Americas Securities LLC boosted its stake in HNI by 167.4% in the 4th quarter. SG Americas Securities LLC now owns 42,621 shares of the business services provider’s stock valued at $1,792,000 after buying an additional 26,683 shares in the last quarter. 75.26% of the stock is currently owned by institutional investors and hedge funds.

HNI Stock Down 8.0%

The company has a quick ratio of 0.85, a current ratio of 1.33 and a debt-to-equity ratio of 0.40. The business has a 50-day simple moving average of $46.51 and a two-hundred day simple moving average of $44.47. The stock has a market capitalization of $2.05 billion, a P/E ratio of 14.81, a PEG ratio of 0.60 and a beta of 0.94.

HNI Company Profile

HNI Corporation, founded in 1944 as the Heating & Novelty Company and headquartered in Muscatine, Iowa, is a leading manufacturer of office furniture and hearth products. Over its history, the company has evolved from producing gas heaters into two primary business segments: Office Furniture and Hearth & Home. HNI’s Office Furniture division operates under well-known brands such as The HON Company, Allsteel, Gunlocke and Kimball, offering a comprehensive portfolio of workstations, seating, tables, storage solutions and acoustic products tailored for corporate, education, healthcare and government markets.

In its Hearth & Home segment, HNI designs, manufactures and distributes fireplaces, stoves, fireplace inserts, logs and related accessories.